At North Star Mortgage Network, we proudly serve those who have served. Sometimes, a VA loan needs to be reviewed manually instead of going through the standard automated system. That’s where VA Manual Underwriting comes in — and where our team steps up to help you move forward.

When Is VA Manual Underwriting Needed?

A VA loan may require manual underwriting if there are certain challenges in the loan file. These can include:

• Limited credit history
• Recent bankruptcy, foreclosure, or short sale
• Late mortgage or rent payments
• Default on federal student loans or other government debt

Manual underwriting is allowed, but extra care must be taken by the lender to fully review the loan and ensure it meets all VA guidelines.

Key Rules for VA Manual Underwriting

Here are the main things lenders look for when manually underwriting a VA loan:

• Debt-to-income ratio (DTI) should stay at or below 41%
• If DTI is higher, your residual income must be at least 120% of VA’s guideline
• A 24-month rental history is often required
• All major debts must be verified, even if they’re not on your credit report
• Any late payments on mortgages or major debts in the last year will likely trigger a downgrade

VA Manual Underwriting gives lenders more flexibility — but it also requires detailed documentation.

Credit and Income Documentation

When we manually underwrite a VA loan, we collect:

• Paystubs and W-2s (or tax returns for self-employed borrowers)
• Verification of current and past employment
• Written explanations for past credit issues
• Bank statements for assets to close
• Proof of child support or alimony (if used in qualifying)

We also verify rental history and any large or unusual debts that aren’t on your credit report.

Compensating Factors for a Stronger File

When a VA loan has higher risk (like a high DTI), compensating factors help strengthen the loan. These include:

• Excellent credit with few or no late payments
• Long job history
• Large savings or extra assets
• Military benefits
• A low increase in housing cost from renting to owning
• High residual income (leftover money after all expenses)

We list these strengths clearly in your file to help the VA underwriter make a fair decision.

Why Choose North Star Mortgage for VA Manual Underwriting?

We’ve been helping Florida veterans and service members with home financing for over 25 years. At North Star Mortgage, you’re not just another file — we take the time to explain everything, collect the right paperwork, and advocate for your approval.

Whether you’ve been told your file needs a manual review, or you’ve been denied elsewhere, we’re here to help you take the next step.